- Haruhiko Kuroda, Bank of Japan Governor
The Bank of Japan refrained from boosting stimulus, as the policy board decided by an 8-1 majority vote to leave its monetary policy unchanged. As widely expected, the central bank will keep increasing the monetary base at an annual pace of 80 trillion yen via aggressive asset purchases such as government bonds and some riskier assets such as exchange-traded equity funds. In the statement, the BoJ maintained optimism on Japan's economic outlook, claiming that domestic demand remained firm despite external headwinds such as China's slowdown. However, the monetary authority cut its assessment on both exports and industrial production, due to effects of cooling demand in emerging economies. The strengthening Yen also was among factors that decreased demand for the Japanese goods on overseas markets.
Meanwhile, Mr Kuroda, the BoJ Governor, signalled the possibility that the central bank may lower its inflation outlook due to the drop in oil prices. At the same, economists already started to speculate about the timing of the next monetary easing, with the majority of them betting on October 30, when the BoJ releases its economic and inflation outlook.
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